Article2006

A Theory of Fiscal Imbalance

57 citations0/0 files storedFinanzArchiv Public Finance Analysis

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Fiscal Policies and Political Economy Local Government Finance and Decentralization Global Financial Crisis and Policies

Abstract

egative. In the absence of commitment, the equilibrium transfer is unambiguously larger than the optimal fiscal gap, resulting in a positive fiscal imbalance.

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1994State Responses to Fiscal Crises: The Effects of Budgetary Institutions and Politics 2003Understanding the Soft Budget Constraint 1996Federal Fiscal Constitutions: Risk Sharing and Redistribution 2002Does Federalism Lead to Excessively High Taxes?2001An empirical analysis of intergovernmental tax interaction: the case of business income taxes in Canada 1996Fiscal externalities and the design of intergovernmental grants 2006The Efficiency Consequences of Local Revenue Equalization: Tax Competition and Tax Distortions 1998Taxation and Deadweight Loss in a System of Intergovernmental Transfers

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